Judicial & Non-Judicial Foreclosure Explained

Foreclosure happens when you don't pay your dues on time, forcing the lender to take back the home and put it up for sale. Depending on state laws, foreclosures can either require a formal complaint to be filed in court (judicial foreclosures), or served without a court order (non-judicial foreclosures). Florida is among the 25 states that operate on judicial foreclosure (although some states offer both types).

Judicial foreclosure consists of three stages: the service, the proceeding, and the eviction. The key in dealing with foreclosures is to avoid letting the foreclosure notice reach the final stage (which is eviction) by paying every cent that you owe. A foreclosure notice can be neutralized by settling the outstanding amount, along with penalties and interest. You can still hope for a turnabout in the legal proceedings by defending your ownership of the home. For example, your lawyer could say that the plaintiff failed to follow due process.

Still, foreclosure lawyers say that emphasizing the defendant's ownership of the home is done so that the lender will drop its intent to foreclose the home. Foreclosure can be a scary thing if you let it persist for a long period, but it can be stopped by paying your dues. This just goes to show that it's important to keep your finances in check.